Banner Graphic, Volume 18, Number 32, Greencastle, Putnam County, 14 October 1987 — Page 3

IBM's quarterly profits Net income IMS Current (billions) m quarter I lit rv I T iH —1966 Sauna: IBM ASSORTED PRESS

Increase in profits for IBM again 12 percent rise disappoints experts c. 1987 N.Y. Times News Service NEW YORK - The International Business Machines Corp. oh Tuesday ended a stubborn string of five consecutive quarters in which its profits declined by reporting a 12 percent increase in its third-quarter net income. But Wall Street and the computer industry, which had anticipated that IBM would begin a strong turnaround in the second half of this year, were left disappointed. “A lot of people were expecting gains of a lot bigger magnitude, leading to a lot better year for IBM,” said Carol E. Muratore, the technology analyst at Morgan Stanley & Co. “Now, everyone realizes that was over-optimistic.” In unusually heavy trading, the company’s stock fell more than $3 before steadying at $148.75, down 75 cents. In part, the stock’s performance seemed driven by a widening perception among shareholders and analysts that IBM’s cost-cutting measures were only partly effective and that its mid-range computers were making few inroads against similar offerings by the Digital Equipment Corp. IBM’s third-quarter net income of $1.21 billion, or $2 a share, compared with SI.OB billion, or $1.76 a share, in the quarter a year ago. The company said its revenues for the quarter rose to $12.73 billion, up 6.9 percent from $11.91 billion in the comparable period a year ago. While that seemed to mark some improvement, the company’s results were inflated by two factors: a net gain of SBO million from its sale of a minority interest in the Intel Corp., one of IBM’s most important suppliers, and an SBS million gain because of the lower value of the dollar. That works in IBM’s favor when translating results from Its European and Asian subsidiaries. To the computer industry, IBM’s results struck a discordant note. At a time when the industry itself is in a long-awaited revival, the only company whose products range from the smallest PCs to the largest mainframes seems to be lagging behind. For example, the personal computer business has surged in recent months, lifting companies such as the Compaq Computer Corp. and Apple Computer Inc. IBM itself has ridden that crest: the company said last week that at the end of October it would ship its millionth PS-2 computer, the newest generation of its personal computer line. But sales of IBM’s older models are still extremely strong. Most of those revenues have bypassed IBM itself, which ceased producing its older PC-XT and PC-AT lines to make way for the newer models, and have gone to “clone-makers.” The mainframe business, IBM’s bread-and-butter revenue producer, has also been a sluggish contributor, according to analysts. The company said on Tuesday that “worldwide shipments at the high end of our 3090 mainframes ran ahead of the third quarter of 1986, and we are very pleased with demand for the 3090. ” If investors had expected a stronger performance for the quarter, it was chiefly because IBM initiated a series of early retirement and cost-cutting measures late last year. Most of the expenses associated with those moves came in the first half of the year, and IBM officials had said they anticipated the benefits to come in the second half. But those benefits so far appear to be scant. IBM’s after-tax profit margins improved slightly in the quarter to 9.5 percent, compared with 9 percent in the quarter a year ago. But they were hurt by an 8 percent increase in costs and expenses, including the costs of a recent retirement drive in West Germany. Analysts estimated that the campaign cost IBM about 9 cents a share in the current quarter.

\ efthace < j&nkt> ocro® 01 Our 85th Year of Providing You ) with Quality Home Furnishings w 'sss§ V 7 7 starting tomorrow WE'RE CELEBRATING ’4. S I

Broyhill 5-pc. country oak dinette. 42” round pedestal table with one 18” leaf and four spindle back side chairs, reg. *919.95 SALE *799 Bassett 9-pc. oak traditional dining group. Large oval table with 18” least, six caneback, padded-seat chairs, plus lighted curio china, reg. *1599.95 SALE *1299 Colonial oak 4-pc. dinette includes drop leaf table, 2 mates chairs, and 1 bench. reg. *469.95 SALE *399 7-pc. colonial oak dinette includes 42” round table w/2 leaves, six sturdy, arrow-back chairs. reg. *499.95 SALE *399 Blacksmith Shop contemporary dinette with split-pedestal, steel-base table in oak laminate plus 4 swivel-tilt arm chairs with upholstered seat and back, reg. *IOBO.OO SALE *899 Bassett 9-pc. country pine dining room. Oval extension table with 3 leaves, 6 highback, padded-seat chairs and matching china with lighted interior, reg. *1449.00 SALE *1199 Builtright 3-pc. natural oak dinette. 36” round table with two ladderback chairs. reg. *249.95 SALE *199 EVERY DINING ROOM A DINETTE IS ON SALE!

Wonderßest twin size quilted firm innerspring mattress. reg. *119.95 SALE *79 Dream-o-Flex deluxe quilted mattresses and box springs in beautiful damask ticking Twin set, reg. *319.90 SALE *2lB Full set, reg. *399.90 SALE *2BB Queen set, reg. *499.95 SALE *366 EVERY MATTRESS AND BOX SPRING ON SALE NOW!

90 Days Same As Cash Convenient Budget Terms Visa-Mastercard FREE Delivery

Come and share in the excitement! Browse through three entire floors of fine furniture and beautiful room settings. Help yourself to the fabulous Anniversary Savings of 10% to 50% storewide. An anniversary is a very special time to us and we think it merits a celebration. It's our way of saying "thank you" to you, our loyal customers, for your patronage over the past 85 years and for allowing us to be "your furniture store." 1988 Norman Rockwell Calendar Free For Coming In.

Bassett open stock bedroom collections. "Attic Treasure” in pine and "Proud Heritage” in light oak. Choose one piece or severa I. SALE 20% off Lea modern oak 4 pc. bedroom. Double dresser with vertical mirror, full to queen panel headboard, four-drawer chest, reg. *799.00 SALE *699 Carolina 4 pc. light oak bedroom Double dresser w/mirror, panel headboard, four-drawer chest, reg. *669.85 SALE *SBB Carolina 4 pc. light maple bedroom. Double dresser with mirror, twin spindle bed, four drawer chest, reg. *585.00 SALE *499 Hooker 4-pc. modern oak all wood bedroom. Triple door dresser with mirror, full to queen panel headboard, armoire chest, reg. *1575.00 SALE *1199 Williams solid maple 5 pc. bedroom. 60” triple dresser with vertical mirror, full to queen poster bed, six-drawer chest-on-chest, reg. *1974.00 SALE *1499 EVERY BEDROOM IN-STOCK IS ON SALE NOW! Dresher all-white daybed with link spring, twin size. reg. *218.00 SALE *149 Dresher white wrought iron and brass queen size headboard, reg. *569 SALE *399 4-drawer oak grain chest, 26” w. reg. *89.95 SALE *69 Lea twin size oak all-wood bunkbed complete w/ladder and guardrail. reg. *479.95 SALE *379

Bassett dark pecan and glass tables with cane lower shelves. Your choice: cocktail, end or hexagon styles reg. *159.95 SALE *129 eo. Bassett country pine living room tables. Your choice: all-wood cocktail, end tables or hex table, reg. *169.95 SALE*I39m. Lane all-wood country oak living room tables. Your choice: cocktail, or end table styles, reg. *139.95 SALE *lO9 *o. Leaded crystal table lamps. Your choice of three styles, reg. *89.95 SALE *77 ea. 31-in. high brass table lamps with pleated shades. reg. *64.95 SALE *49 eo. Solid brass swing-arm floor lamp. Athens solid oak five shelf lighted curio w/mirror back, reg. *399.95 SALE *299 Athlens solid oak 8-gun display cabinet w/lock storage below. 100% nylon tone-on-tone textured plush carpeting popular colorations. reg. *9.95 SALE *8.95 h* i*. Soil-hiding nylon plush carpet by Patcraft in 21 decorator hues, reg. *17.50 SALE *12.95 m H EVERY FAMOUS-MAKE We stock a complete line of in-stock appliances from Frigidaire, Speed Queen and Admiral. •Washers •Dryers •Refrigerators *Electricand •Microwaves Gas Ranges

Quality.. Value..Service..Low, Low Prices Since 1902 'fflkaceithik 24 S. Indiana 653-8485 Greencastle, In.

October 14,1987 THE BANNERGRAPHIC

International pastel floral traditional sofa with wrap-over tight back, reg. *699.00 SALE *599 International quilted-traditional centermatched coral and teal floral sofa with loose-pillow back, reg. *899.00 SALE *499 International contemporary three cushion sofa in a luxurious grey anc pewter action velvet fabric, reg. *732.00 SALE *499 King Hickory hi-back colonial brown and rust matched plaid three cushion sofa. reg. *875.00 SALE *699 Stratford hi-pillowback incliner sofa in a blue and mauve plaid Herculon fabric. Footrest concealed in each end. reg. *949.95 SALE *799 Stratford three-cushion country blue print sofa w/toss pillows plus fabristain protection. reg. *699.95 SALE *569 EVERY SOFA, LOVESEAT A SLEEPER IS SALE PRICED!

Chief City hi-back, fawn-color stripec velvet swivel rocker. reg. *269.95 SALE *199 Stylecraft ladies' size grey stripe-velvet swivel rocker. reg. *189.95 SALE *129 Action/Lane 2-way recliner in a blue dot textured fabric. reg. *299.95 SALE *219 Stratolounger swivel glider recliner in a blue-grey velvet fabric. reg. *479.95 SALE *399 Action/Lane brown-on-brown action velvet rocker recliner. reg. *399.95 SALE *299 Action/Lane genuine leather-match rocker recliner. Everything you touch is leather; the rest is vinyl. Rich coftee color. reg. *599.95 SALE *499 EVERY CHAIR A RECLINER IS ON SALE!

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